G8 says world economy gaining strength, eyes debt

DEAUVILLE, France (Reuters) - The Group of Eight leaders agreed on Friday that the global economy recovery was becoming more "self-sustained," although higher commodity prices were hampering further growth.

In a communique to be issued at the end of a two-day summit in France, a copy of which was obtained by Reuters, European nations, the United States and Japan all agreed to ensure their public finances were sustainable.

"The global recovery is gaining strength and is becoming more self-sustained. However, downside risks remain, and internal and external imbalances are still a concern," the communique said.

"Europe has adopted a broad package of measures to deal with the sovereign debt crisis faced by a few countries, and it will continue to address the situation with determination and to pursue rigorous fiscal consolidation alongside structural reforms to support growth.

"The United States will put in place a clear and credible medium-term fiscal consolidation framework, consistent with considerations of job creation and economic growth.

"In Japan, while providing resources for the reconstruction after the disaster, the authorities will also address the issue of sustainability of public finances."